WallStSmart

Canadian Natural Resources Ltd (CNQ)vsFranco-Nevada Corporation (FNV)

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Smart Verdict

WallStSmart Research — data-driven comparison

Canadian Natural Resources Ltd generates 2049% more annual revenue ($38.76B vs $1.80B). FNV leads profitability with a 61.6% profit margin vs 27.9%. CNQ appears more attractively valued with a PEG of 3.42. FNV earns a higher WallStSmart Score of 68/100 (B-).

CNQ

Strong Buy

67

out of 100

Grade: B-

Growth: 5.3Profit: 8.5Value: 7.3Quality: 5.0

FNV

Strong Buy

68

out of 100

Grade: B-

Growth: 9.3Profit: 9.0Value: 2.7Quality: 9.0
Piotroski: 4/9Altman Z: 12.18
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CNQUndervalued (+55.1%)

Margin of Safety

+55.1%

Fair Value

$90.53

Current Price

$44.53

$46.00 discount

UndervaluedFair: $90.53Overvalued
FNVSignificantly Overvalued (-54.5%)

Margin of Safety

-54.5%

Fair Value

$166.74

Current Price

$232.11

$65.37 premium

UndervaluedFair: $166.74Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CNQ6 strengths · Avg: 9.2/10
P/E RatioValuation
11.8x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
371.8%10/10

Earnings expanding 371.8% YoY

Market CapQuality
$92.88B9/10

Large-cap with strong market position

Return on EquityProfitability
25.8%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
27.9%9/10

Keeps 28 of every $100 in revenue as profit

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

FNV6 strengths · Avg: 10.0/10
Profit MarginProfitability
61.6%10/10

Keeps 62 of every $100 in revenue as profit

Operating MarginProfitability
76.1%10/10

Strong operational efficiency at 76.1%

Revenue GrowthGrowth
85.8%10/10

Revenue surging 85.8% year-over-year

EPS GrowthGrowth
108.8%10/10

Earnings expanding 108.8% YoY

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
12.1810/10

Safe zone — low bankruptcy risk

Areas to Watch

CNQ2 concerns · Avg: 3.0/10
Revenue GrowthGrowth
1.5%4/10

1.5% revenue growth

PEG RatioValuation
3.422/10

Expensive relative to growth rate

FNV3 concerns · Avg: 2.0/10
PEG RatioValuation
11.812/10

Expensive relative to growth rate

P/E RatioValuation
40.7x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-1.73B2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : CNQ

The strongest argument for CNQ centers on P/E Ratio, EPS Growth, Market Cap. Profitability is solid with margins at 27.9% and operating margin at 19.6%.

Bull Case : FNV

The strongest argument for FNV centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 61.6% and operating margin at 76.1%. Revenue growth of 85.8% demonstrates continued momentum.

Bear Case : CNQ

The primary concerns for CNQ are Revenue Growth, PEG Ratio.

Bear Case : FNV

The primary concerns for FNV are PEG Ratio, P/E Ratio, Free Cash Flow. A P/E of 40.7x leaves little room for execution misses.

Key Dynamics to Monitor

CNQ profiles as a value stock while FNV is a growth play — different risk/reward profiles.

CNQ carries more volatility with a beta of 0.91 — expect wider price swings.

FNV is growing revenue faster at 85.8% — sustainability is the question.

Monitor OIL & GAS E&P industry trends, competitive dynamics, and regulatory changes.

Bottom Line

FNV scores higher overall (68/100 vs 67/100), backed by strong 61.6% margins and 85.8% revenue growth. CNQ offers better value entry with a 55.1% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Canadian Natural Resources Ltd

ENERGY · OIL & GAS E&P · USA

Canadian Natural Resources Limited acquires, explores, develops, produces, markets and sells crude oil, natural gas and natural gas liquids (NGL). The company is headquartered in Calgary, Canada.

Franco-Nevada Corporation

BASIC MATERIALS · GOLD · USA

Franco-Nevada Corporation is a gold-focused royalty and flow company in the United States, Latin America, Canada, Australia, Europe and Africa, and internationally. The company is headquartered in Toronto, Canada.

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